Da Nang asks for incentives for major investors in IT park

Da Nang asks for incentives for major investors in IT park

The central city of Da Nang has asked for the government’s permission to offer incentives to foreign-invested projects with capital of over $200 million in its IT park.

According to the city Department of Planning & Investment, in the past 10 months, the city attracted nearly $153 million of foreign investment capital, down by 47% from last year. To date, the total registered capital of FDI projects in the city is only $4 billion, ranking 16th out of 63 provinces across the country.

It is said that the results were poor compared to the city’s potential and to other areas like HCM City with its $1 billion Intel project, or Bac Ninh with its big Canon and Samsung projects.

The city’s senior officials said at a recent dialogue with investors that the city is seeking the government’s approval on big incentives for FDI projects with capital of $200 million or more and for hi-tech projects with total spending on research and development of over 1% of annual total revenue.

Such projects will have an income tax rate of 10% within 30 years and 50% reduction of land rent.

Currently, investors in the Da Nang high-tech zone enjoy corporation income tax rate of 10% for 15 years, and are exempted from corporate income tax in the first four years and a 50% reduction in the next nine years.

In addition to solutions, the Da Nang high-tech park is negotiating with major investors from Japan, South Korea, the US and Europe to call for funding into the park.

Under a plan approved by the Prime Minister, the park has a total area of nearly 1,130 hectares, of which 60% of the area will be devoted to the construction of functional areas and 40% to natural landscapes.

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